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Business, 12.02.2020 00:03 kaylallangari1509

Colorado Business Tools manufactures calculators. Costs incurred in making 9,810 calculators in February included $29,650 of fixed manufacturing overhead. The total absorption cost per calculator was $11.30.

Required:

a. Calculate the variable cost per calculator.

b. The ending inventory of pocket calculators was 840 units higher at the end of the month than at the beginning of the month. By how much and in what direction (higher or lower) would operating income for the month of February be different under variable costing than under absorption costing?

c. Express the pocket calculator cost in a cost formula.

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